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Sherwin-Williams Releases Q4, 2018 Numbers

Friday, February 1, 2019

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The Sherwin-Williams Company (Cleveland) released its 2018 year-end and fourth-quarter financial results on Thursday (Jan. 31), boasting record consolidated net sales at $17.53 billion.

Last year’s record sales were reported at $14.98 billion and were largely owed to the June 2017 acquisition of Valspar. The company notes, though, that part of the 17 percent increase is still due primarily to incremental Valspar sales.

Consolidated net sales for the fourth quarter increased 2.1 percent to $4.06 billion, which Sherwin attributes to higher sales volume in the Americas group.

M.O. Stevens, CC BY-SA 3.0, via Wikimedia Commons

The Sherwin-Williams Company (Cleveland) released its 2018 year-end and fourth-quarter financial results on Thursday (Jan. 31), boasting record consolidated net sales at $17.53 billion.

“Sherwin-Williams delivered record results in 2018 despite a fourth quarter that was below our expectations,” said John G. Morikis, Chairman, President and CEO.

“In all business segments, we continued to focus on innovative products and services to help our customers improve their productivity and profitability. We also implemented price increases during the year to combat persistent raw material inflation. In addition, our team made significant progress on our acquisition integration efforts, with the resulting benefits exceeding our target for the year. We also generated record cash from operations in 2018, enabling us to invest in growth initiatives, increase our dividend, purchase shares of stock and significantly reduce debt.”

By Segment

“We enter 2019 well-positioned and focused on what we can control,” Morkis said.

“While the current macroeconomic outlook is less than clear, we see significant opportunities for profitable growth throughout the business. In [the] Americas Group, we will continue to invest in our store model and best-in-class products while executing on share of wallet and new account activation initiatives. In the Consumer Brands Group, we are excited by the exclusive national partnership and shared commitment to growth we have with our largest retail partner, as well as by our strong relationships with other leading retailers. Finally, in the Performance Coatings Group, we are focused on leveraging the combined capabilities of our integrated organization across the various end markets and geographies we serve.”

Net sales in the Americas Group increased 5.6 percent to $9.63 billion year over year and increased 3 percent to $2.25 billion in the quarter compared to last year. Sherwin attributes this to higher architectural paint sales volume and selling price increases.

Sherwin-Williams

Net sales in the Americas Group increased 5.6 percent to $9.63 billion year over year and increased 3 percent to $2.25 billion in the quarter compared to last year. Sherwin attributes this to higher architectural paint sales volume and selling price increases.

Net sales from stores in the U.S. and Canada open for at least a year increased 5.1 percent in the year and 2.9 percent in the quarter over last year. Segment profits increased to $1.9 billion in the year, up from $1.77 billion, and to $413.4 million the quarter, up from $406 million.

The Consumer Brands Group’s net sales increased 27.1 percent in the year to $2.74 billion, due mostly to the Valspar sales as well as selling price increases and a new customer program. Net sales in the quarter, however, decreased 6.5 percent year over year to $534.4 million, which the company attributes to lower volume sales and a new revenue standard.

Segment profit increased to $261.1 million in the year from $202.8 million.

The Performance Coatings Group saw the biggest net sales jump with a 39.4 percent increase to $5.17 billion in the year, which is also attributed to the Valspar sales and selling price increases. Net sales in the quarter increased 4.6 percent to $1.27 billion.

Segment profit increased in the year as well to $452.1 million from $262.8 million.

"In the first quarter of 2019, we anticipate our net sales will increase two to six percent compared to the first quarter of 2018,” Morikis added.

“The first quarter 2019 will include the expenses related to the defined benefit plan annuity purchase of approximately $.43 per share. For the full year 2019, we expect core net sales to increase 4-7 percent compared to full year 2018.”

   

Tagged categories: Asia Pacific; Earnings reports; EMEA (Europe, Middle East and Africa); Finance; Good Technical Practice; Latin America; North America; Sherwin-Williams; Z-Continents

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